Synopsys Shuts Doors on China Amid New U.S. Export Restrictions

Semiconductor design software leader Synopsys has informed its Chinese employees to immediately cease sales and services in the region. This decision follows new U.S. export restrictions aimed at curtailing the shipment of certain products to China, a move reported by Reuters based on internal communications.

In response to a directive from the U.S. Department of Commerce's Bureau of Industry and Security, Synopsys has preemptively suspended its financial forecasts and imposed a halt on fulfilling existing and new orders in China. The restrictions, effective from May 2025, encompass all Chinese clients, including military entities.

This enforcement could result in a major disruption for the Chinese semiconductor sector, where Synopsys, along with Cadence and Siemens EDA, commands over 70% of the market. Access to EDA tools, critical for chip design, remains in jeopardy, potentially stalling innovations reliant on U.S. technologies.

(With inputs from agencies.)